Quiz | April 2011

More Ethical Dilemmas: Do You Agree With Knight?

Do you handle your money and your business dealings in an ethical manner? For example, is it okay to walk away from a house you're underwater on? Can you marry for money instead of love?

Here are ten questions about real-life financial quandaries that readers have asked editor-in-chief Knight Kiplinger, who answered them in his Money & Ethics magazine column. See how your moral compass squares with Knight's opinions. And remember, reasonable people can differ.

When you've completed the quiz, you'll find links to Knight's column archive and other quizzes inspired by Knight's mail. You can even send him an email with your own question.

Quiz

More Ethical Dilemmas: Do You Agree With Knight?

Question 1 of 10

Your home's value has fallen, so now you owe more on the house than it's worth. Even though you can afford the payments, is it okay to default?

A. Yes, you can cut your losses and walk away.
B. No, default is ethical only for people who can't afford their home because of circumstances beyond their control.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 1 of 10

Your home's value has fallen, so now you owe more on the house than it's worth. Even though you can afford the payments, is it okay to default?

Knight Agrees!Here's how Knight sees it: CORRECT_ANSWER

Knight Disagrees!You answered, YOUR_ANSWER

Here's how Knight sees it, CORRECT_ANSWER

"Homeowners (and investors) should continue honoring their contractual obligations with all the resources at their disposal. Besides, defaulting on your mortgage could ruin your credit rating for a long time and make it hard for you to rent or buy a new home."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 2 of 10

What should you do if you find out a colleague lied on his résumé?

A. Go straight to the boss and tell on that person.
B. Speak in confidence with human resources without identifying the colleague, and ask the colleague to report himself.
C. Let it go—it's none of your business.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 2 of 10

What should you do if you find out a colleague lied on his résumé?

Knight Agrees! Here's what Knight thinks you should do: CORRECT_ANSWER

Knight Disagrees! You answered, YOUR_ANSWERHere's what Knight thinks you should do: CORRECT_ANSWER

"Try to get the HR manager to agree that if the employee comes forward voluntarily to correct his résumé, he won't be fired. But don't be surprised if the manager says that a probationary memo must be placed in the employee's personnel file. Then go to your colleague and encourage him to correct his record with the HR department."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 3 of 10

Is it okay to marry someone for financial security rather than love?

A. Yes, if you're honest about your motivation.
B. No, that would make you a gold digger.

"There's nothing unethical about marrying someone you're not in love with as long as you tell your potential spouse your feelings and primary motivation for the marriage. And you must be honest with yourself about whether you believe you can be faithful. You'll probably be asked to sign a prenup, too."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 4 of 10

Is it okay to go without health insurance even though you can afford it—and, instead, rely on family, friends and the government's new high-risk pool to pay your bills if you get really sick?

A. Yes.
B. No.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 4 of 10

Is it okay to go without health insurance even though you can afford it—and, instead, rely on family, friends and the government's new high-risk pool to pay your bills if you get really sick?

"People who can afford all kinds of insurance—health, life, disability and so on—but choose to 'go naked' are essentially thumbing their noses at their families and society by expecting someone else to pay for their crises."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 5 of 10

Is it unethical of voters and their elected representatives to allow the federal government to grossly overspend current revenues?

A. It's wrong to saddle future generations with massive debt.
B. No, it may be fiscally irresponsible but not unethical.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 5 of 10

Is it unethical of voters and their elected representatives to allow the federal government to grossly overspend current revenues?

"Some people believe that it is acceptable—indeed, even principled—to run budget deficits in times of recession, to relieve the distress of the unemployed and stimulate the economy. I'll accept that—as long as the budget is brought back into balance, ideally with spending cuts, as soon as strong growth resumes. But passing on the federal debt to future generations is unethical."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 6 of 10

You’ve been offered a job, and you’re asked to sign a noncompete clause that restricts you from ever working for a rival company. Is it ethical of your prospective employer to require that?

A. Yes.
B. Not usually.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 6 of 10

You’ve been offered a job, and you’re asked to sign a noncompete clause that restricts you from ever working for a rival company. Is it ethical of your prospective employer to require that?

"It depends on how restrictive the clause is. In some states—notably California—noncompete agreements are generally not allowed. Most states deem them enforceable only for a limited period. But in general, noncompete agreements aren't ethical because they prevent people from using their experience to continue their careers elsewhere. There are laws to protect a company from damaging behavior, such as theft of trade secrets, by a former employee."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 7 of 10

After your company lays you off in a big downsizing, an attorney says he could get you a $10,000 settlement if you and the other laid-off workers claim discrimination. However, you know the layoffs fell similarly on people of different backgrounds and levels of seniority. What should you do?

Quiz

More Ethical Dilemmas: Do You Agree With Knight?

Question 7 of 10

After your company lays you off in a big downsizing, an attorney says he could get you a $10,000 settlement if you and the other laid-off workers claim discrimination. However, you know the layoffs fell similarly on people of different backgrounds and levels of seniority. What should you do?

"This would be a classic lawyer’s shakedown of a distressed company that has apparently done nothing wrong. The lawyer is betting that your former employer would rather give you a quick $10,000 than have to incur the costs—in staff time and legal bills—of defending itself against a baseless lawsuit."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 8 of 10

You sell an antique to a dealer at a price you accepted as fair. Later, you learn that he sold it for many times the amount he paid you—and won't share any of the profit with you. Is that ethical?

A. No, it's not. He should have shared his windfall with you.
B. You agreed to his offered price. Let it go.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 8 of 10

You sell an antique to a dealer at a price you accepted as fair. Later, you learn that he sold it for many times the amount he paid you—and won't share any of the profit with you. Is that ethical?

"He acted unethically, regardless of whether he knew at the time just how valuable your item was. If he discovered its true worth later (but before selling it), an ethical dealer would have contacted you to discuss what he had learned —not offering to return your merchandise, but to share with you some portion of the future profit."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 9 of 10

You bought your home 30 years ago after a murder took place in it. Should you feel obligated to volunteer this information when you sell the home?

A. Yes.
B. No.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 9 of 10

You bought your home 30 years ago after a murder took place in it. Should you feel obligated to volunteer this information when you sell the home?

"It's not as if you're hiding a severe structural defect. Houses have a market value that should be independent of both negative and positive traits of their previous occupants, especially after so long a period. Most buyers know little—and have no way of finding out—about the private lives of a house's earlier owners, and most probably don't care. But check your state's laws; some require disclosure of crimes in the recent past."

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More Ethical Dilemmas: Do You Agree With Knight?

Question 10 of 10

After a long job search, you finally are hired. A month after you start working, another firm you interviewed with offers you your dream job. What should you do?

A. Take it. You owe your new employer nothing.
B. It would be unethical to jump ship so quickly.

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More Ethical Dilemmas: Do You Agree With Knight?

Question 10 of 10

After a long job search, you finally are hired. A month after you start working, another firm you interviewed with offers you your dream job. What should you do?

"You owe your first employer longer service in return for the good faith shown in hiring you and the cost of training you. How much longer? Hard to say, but more than one month. You should tell the second firm that you're honored by the offer but feel an obligation to stay where you are. Then keep in touch with the company and hope another position opens later."

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More Ethical Dilemmas: Do You Agree With Knight?

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Editor's Picks From Kiplinger

answer_num=2,2,1,2,1,2,2,1,2,2|answer_text="B. No, default is ethical only for people who can't afford their home because of circumstances beyond their control.","B. Speak in confidence with human resources without identifying the colleague, and ask the colleague to report himself.","A. Yes, if you're honest about your motivation.","B. No.","A. It's wrong to saddle future generations with massive debt.","B. Not usually.","B. It's unethical to claim discrimination you didn't experience.","A. No, it's not. He should have shared his windfall with you.","B. No.","B. It would be unethical to jump ship so quickly."|total_questions=10|url=/quiz/spending/T065-S001-the-money-ethics-quiz-2010-edition/index.html|total_pages=22|page_id=10499|evaltext_num=0|kipad_id=FamilyFinancesQuizzes